Simulation of a Sugar Supply Chain

Authors

Giraldo Garcia, Jaime Alberto

Castrillon Gomez, Omar Danilo

Arango Marin, Jaime Antero

Abstract

The objective of this paper is to show a simulation model of a 3-stage sugar supply chain (manufacturer, distributors and customers) that includes customers in Colombia, Ecuador and Peru, with 1 distributor in each country and the manufacturer in Colombia. Initially, the center of gravity algorithm is used to determine the best distributor locations, and then the simulation technique is used to model inventory control policies, transportation, and supply rules. Finally, it is indicated how the developed model supports the management of the supply chain in making decisions such as: location of distribution centers, selection of the transport network and definition of appropriate inventory policies to satisfy demand.